The government has cleared private equity firm KKR’s proposal to acquire stakes in two pharmaceutical firms in deals worth over Rs 1,400 crore on Tuesday. The announcement comes close to the date of election outcome on Friday.

In the first proposal, the Cabinet cleared KKR Floorline Investments PTE Ltd’s acquisition of stake in Gland Pharma through a combination of primary investment into the company and share purchase from EILSF which is an existing investor. The private equity firm will pick up 37.98 per cent stake in Gland Pharma.

The Cabinet also gave its nod for a proposal where KKR would acquire 24.9 per cent stake in Gland Celsus Bio Chemicals Pvt Ltd.

KKR, Gland Pharma and Gland Celsus had entered into share-purchase agreements on November 27 last year. KKR had also entered into a shareholders’ agreement with promoters of Gland Pharma and EILSF Co-Invest LLC.

KKR will invest $191 million (around Rs 1,150 crore) in Gland Pharma, while it will spend $39.8 million (Rs 240 crore) in Gland Celsus.

Gland Pharma produces and markets specialised injectable formulations for generic versions of drugs. It also manufactures a limited quantity of active pharmaceutical ingredients.